Colgate-Palmolive Company reported second-quarter 2025 net sales of $5,110 million, a 1.0% increase from the prior year, with organic sales growing 1.8%. Excluding the negative impact of lower private label pet sales, organic sales growth accelerated to 2.4%. GAAP diluted earnings per share (EPS) increased 2% to $0.91, and Base Business diluted EPS rose 1% to $0.92.
The company's GAAP gross profit margin decreased by 50 basis points to 60.1% in Q2 2025, primarily due to significantly higher raw and packaging material costs, which had a 420 basis point impact. This was largely offset by cost savings from funding-the-growth initiatives (250 basis points), higher pricing (80 basis points), and favorable mix (20 basis points). Advertising investment decreased to 13.3% of net sales from 14.0% in Q2 2024.
Separately, Colgate-Palmolive announced a new three-year Productivity Program, projected to incur cumulative pre-tax charges of $200 million to $300 million by December 31, 2028. This program aims to align organizational structure, optimize the global supply chain for agility, and streamline operations to reduce overhead costs, supporting the company's 2030 strategy. The full-year 2025 guidance for net sales and organic sales growth remained unchanged, anticipating low single-digit increases.
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